Business of microfinance institutions contracts in Q2
The second quarter saw a significant drop in loan portfolios in most microfinance market segments on the back of the introduced anti-coronavirus restrictive measures, closed offices and lower amounts of issued loans. Contrastingly, online loans of microfinance organisations (MFOs) gained in popularity with their share rising from 36% to 39%.
Regulatory relaxations of the Bank of Russia alleviated the economic effects of the pandemic for both companies and their borrowers. Growth of the amount of issued loans was observed in the segment of small and medium-sized enterprises. This way, other sectors of the economy also received indirect support. Further details regarding the main market trends for 2020 Q2 are available in the Review of Key Indicators of Microfinance Organisations.
